CC 2024-06-25_09c Homeless Service Grant Agreement_5CHC
Item 9.c.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director
SUBJECT: Homeless Service Grant Agreement with 5Cities Homeless Coalition
DATE: June 25, 2024
RECOMMENDATION:
1) Review the proposal from 5Cities Homeless Coalition (5CHC) and authorize the City
Manager to execute a Grant Agreement between the City and 5CHC for Housing
Assistance Program and Homeless Shelter Support in the City subject to any, minor,
technical, or non-substantive changes as approved by the City Manager and City Attorney
that effectuates the City Council’s intent;
2) Make findings that approval of an agreement and expenditure of funds is not a project
subject to the California Environmental Quality Act (“CEQA”) because it has no potential
to result in either a direct, or reasonably foreseeable indirect, physical change in the
environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Funding in the amount of $300,000 was allocated towards Homeless Shelter support from
American Rescue Plan Act (ARPA) funds received by the City. $100,000 of the ARPA
funds were provided to 5CHC for Winter Shelter support. Staff is now recommending
appropriating the remaining $200,000 for Housing Assistance Program in the amount of
$50,000 and Homeless Shelter Support in the amount of $150,000.
BACKGROUND:
In 2021, the City was allocated $4,300,241 in ARPA funding from the f ederal government.
To support the immediate pandemic response, bring back jobs, and lay the groundwork
for a strong and equitable recovery, ARPA established the Coronavirus State and Local
Recovery Fund, designed to deliver $350 billion to state, local, te rritorial, and Tribal
governments to bolster their response to the COVID-19 emergency and recover from the
issued rules detailing how ARPA funds may be used. One such use includes affordable
housing programs provided to households, businesses, or populations disproportionately
impacted by the COVID-19 public health emergency. Additionally, ARPA funds may be
provided to nonprofit organizations to address impacts associated with the pandemic.
Page 46 of 267
Item 9.c.
City Council
Homeless Service Grant Agreement with 5Cities Homeless Coalition
June 25, 2024
Page 2
5CHC is a non-profit organization focused on providing service to families and individuals
by providing the resources, support, and hope needed to become self -sufficient,
productive community members. The organization submitted a request for a portion of
the City’s available ARPA funding to support the Winter Shelter program. At its meeting
on October 12, 2021, the City Council allocated $300,000 of the City’s ARPA funding to
Homeless Shelter support. On September 26, 2023, the City Council approved a
Homeless service Grant Agreement with 5CHC utilizing $100,000 from ARPA funding to
provide Winter Shelter support.
ANALYSIS OF ISSUES:
Housing Assistance Program
5CHC Housing Assistance program serves residents throughout San Luis Obispo County
who are currently homeless or at-risk of losing housing. Case management and financial
assistance is offered for rent, deposit and immediate needs b ased on differing criteria.
The proposed $50,000 ARPA funding allocation will assist 5CHC to provide direct
financial assistance to support housing and utility needs for residents of Arroyo Grande.
Funds will be used to help those experiencing homelessness to obtain housing through
Rapid Re-Housing and those at-risk of homelessness to avoid eviction through our
Homeless Prevention Program. These ARPA funds will help 5CHC to provide the local
match required for other federal and state funds, which require a dollar-for-dollar local
match.
Homeless Shelter Support
5CHC Homeless Shelter Support provides shelter and housing navigation services
through the 20-bed Cabins for Change Program and 30-bed Balay Ko on Barca Program.
At each of these facilities, there is case management, connections to food services,
recovery, and housing stabilization guidance. The individual cabins have beds, heat and
electricity. Shared dining, bathroom and shower facilities are provided in a separate unit.
The facility operates 24 hours a day and provides individual adults with a private, s afe
room to stay in while they utilize the provided resources to take their next steps toward
sustainable housing. Both locations operate with a goal of assisting participants to find
permanent housing within 90 days. The proposed $150,000 ARPA funding allocation will
assist 5CHC to provide shelter and housing navigation services. Five participants at
Cabins for Change have been from Arroyo Grande and of the current 313 participant wait
list approximately 12% of the applicants report being from Arroyo Grand e. This funding
request amounts to approximately 2.86% of the overall 5CHC’s shelter program two -year
budget.
The full proposal can be found in Attachment 2. These funds will be fully expended by the
December 2026 deadline.
Page 47 of 267
Item 9.c.
City Council
Homeless Service Grant Agreement with 5Cities Homeless Coalition
June 25, 2024
Page 3
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve and authorize the City Manager to execute a Grant Agreement between
the City and 5CHC for $200,000 towards Housing Assistance Program and
Homeless Shelter Support subject to any, minor, technical, or non-substantive
changes as approved by the City Manager and City Attorney that effectuates City
Council’s intent;
2. Modify and approve the Grant Agreement and authorize its execution;
3. Do not approve the Grant Agreement, which will delay and/or not provide funding
to the for Housing Assistance Program and Homeless Shelter Support and another
eligible use will need to be identified; or
4. Provide other direction to staff.
ADVANTAGES:
The $200,000 allocation to 5CHC from ARPA Funding will help ensure that the City
spends the ARPA allocation before the allotted timeframe to expend those funds under
Federal regulations expires on December 31, 2026.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
The proposed agreement and expenditure of funds is not a project subject to CEQA
because it has no potential to result in either a direct, or reasonably foreseeable indirect,
physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3),
15378.)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Proposed Grant Agreement
2. 5CHC Proposal
Page 48 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -1- ARPA AGREEMENT
HOMELESSNESS PREVENTION SERVICES GRANT AGREEMENT
BY AND BETWEEN
CITY OF ARROYO GRANDE
AND
5CITIES HOMELESS COALITION
(ARPA REVENUE LOSS CATEGORY PROJECT)
1. PARTIES AND DATE.
This Agreement is made and entered into this _____ day of ________, 20___, by and
between the City of Arroyo Grande, a municipal corporation organized under the laws of the State
of California with its principal place of business at 300 E. Branch Street, Arroyo Grande, California
93420, County of San Luis Obispo, State of California ("City") and 5Cities Homeless Coalition, a
California Nonprofit Corporation, with its principal place of business at 100 South 4th Street, PO
Box 558, Grover Beach, CA 93483 ("Recipient"). City and Recipient are sometimes individually
referred to herein as "Party" and collectively as "Parties."
2. RECITALS.
2.1 On March 10, 2021, the United States Congress passed, and President Joseph
Biden signed into law, the American Rescue Plan Act (“ARPA”);
2.2 ARPA established the Coronavirus State Fiscal Recovery Fund (“CSFRF”) and
Coronavirus Local Fiscal Recovery Fund (“CLFRF”), together known as the Coronavirus State
and Local Fiscal Recovery Funds (“SLFRF”) program, which provide a combined $350 billion in
assistance to eligible state, local, territorial, and Tribal governments to help turn the tide on the
pandemic, address its economic fallout, and lay the foundation for a strong and equitable
recovery.
2.3 The Interim Final Rule on SLFRF issued by the Department of the Treasury
effective May 17, 2021, and the Final Rule issued by the Department of the Treasury effective
April 1, 2022, (together the Interim Final Rule and the Final Rule are hereinafter referred to as the
“Rule”) provide the rules and guidelines for how the ARPA funds may specifically be spent.
Further, the Rule allows for the City to transfer SLFRF funds to a Recipient who experienced
public health impact or a negative economic impact due to the COVID-19 public health
emergency.
2.4 The City received federal funding in the form of SLFRF under ARPA (“Funds”) in
response to the coronavirus (“COVID-19”) pandemic. These funds may be used to fund services
traditionally provided by a government.
2.5 Under ARPA, the City may provide grants to Beneficiaries to mitigate the negative
economic impacts of the COVID-19 pandemic. Treasury has defined Beneficiaries to include
individuals, households, 501(c)(3) or 501(c)(19) non-profit organizations, small businesses and
impacted industries that experienced public health or negative economic impacts as a result of
the COVID-19. Further, the City may use ARPA funds under the revenue loss project category to
Page 49 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -2- ARPA AGREEMENT
obtain government services.
2.6 By letter dated April 30, 2024, Recipient submitted a proposal to provide
homelessness prevention and supportive services in programs further described in Exhibit “A”,
which include but are not limited to a winter warming shelter (“Programs”).
3. TERMS.
3.1 Scope of Programs and Term; Restrictions on Use of Funds.
3.1.1 General Use of Funds. Recipient promises and agrees to furnish all labor,
materials, tools, equipment, services, and incidental and customary work necessary to fully and
adequately operate the Programs. All Programs shall be subject to, and performed in accordance
with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all
applicable local, state and federal laws, rules and regulations.
3.1.2 ARPA Related Restrictions. The Funds paid under this Agreement are
subject to the following conditions:
3.1.2.1 The Recipient agrees to abide by all terms and conditions set
forth in ARPA, the Rule, additional accompanying guidance, and this Agreement.
3.1.2.2 All Funds must be obligated by December 31, 2024.
3.1.2.3 All Funds must be expended by December 31, 2026.
3.1.2.4 The use of Funds are to provide services traditionally provided
by the City, including operation of homelessness prevention programs.
3.1.2.5 All Funds must be expended for Programs and all invoices for
Programs submitted to the City for review by the City and closeout in accord ance with ARPA
requirements on or before October 31, 2026.
3.1.2.6 The Funds shall not be used for any activity that would violate
City, state or federal statutory or decisional law, and must be spent in accordance with this
Agreement and ARPA.
3.1.3 Term. The term of this Agreement shall be from the Effective Date to
December 31, 2026, unless earlier terminated as provided herein. Recipient shall operate the
Programs using the Funds within the term of this Agreement, and shall meet any other established
schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this
Agreement if so desired; provided, however, City shall not extend the deadline for use of the
Funds and City shall be under no obligation to provide additional funding of any kind for the
Programs.
3.2 Grant Funds.
3.2.1 Grant Funds; Program Budget. Recipient shall receive Funds for expenses
incurred in accordance with the Program Budget, such Funds not exceed TWO HUNDRED
THOUSAND AND NO/100 DOLLARS ($200,000.00). The Program Budget, but not the total
Page 50 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -3- ARPA AGREEMENT
amount of Funds to be provided, may be amended from time to time pursuant to an amended
Program Budget submitted to the City by Recipient for approval of the City Manager or City
Representative, as applicable, at their reasonable discretion.
3.2.2 Payment of Funds. Recipient shall submit to City a reimbursement request
which indicates the amount, payee, exact use of, and Program Budget category for all expenses
incurred by Recipient for Programs. The reimbursement request shall include copies of any
invoices for which Funds are requested and proof of payment of the invoice. City shall, within 30
days of receiving such complete reimbursement request, review the reimbursement request and
pay all non-disputed and approved charges. If the City disputes any of Recipient's requested
reimbursements, the City shall give written notice to Recipient within thirty (30) days of receipt of
an reimbursement request of any disputed fees set forth therein. Payment shall not constitute
acceptance of any reimbursement request completed by Recipient. The making of final payment
shall not constitute a waiver of any claims by the City for any reason whatsoever.
3.2.3 Reimbursement for Expenses. Recipient shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3 Responsibilities of Recipient.
3.3.1 Certification. By signing the Agreement, Recipient certifies that the
information provided in its June 21, 2023 proposal was true and accurate and that the Funds
received pursuant to this Agreement will be used exclusively to mitigate the impacts of
homelessness and for the purposes described herein.
3.3.2 Independent Contractor; Control and Payment of Subordinates. The
Programs shall be performed by Recipient or under its supervision. Recipient will determine the
means, methods and details of performing the Programs subject to the requirements of this
Agreement. Recipient is receiving Funds in the form of a grant and is not being retained as an
employee. Any personnel performing the Programs on behalf of Recipient shall not be employees
of City and shall at all times be under Recipient's exclusive direction and control. Neither City, or
any of its officials, officers, directors, employees or agents shall have control over the conduct of
Recipient or any of Recipient’s officers, employees or agents, except as set forth in this
Agreement. Recipient shall pay all wages, salaries, and other amounts due such personnel in
connection with their performance of Programs under this Agreement and as required by law.
Recipient shall be responsible for all reports and obligations respecting such additional personnel,
including, but not limited to: social security taxes, income tax withholding, unemployment
insurance, disability insurance, and workers' compensation insurance.
3.3.3 Schedule of Programs. Recipient shall perform the Programs in a prompt
and timely manner and in accordance with the Scope of Programs and Restrictions on Use of
Funds set forth above. Recipient represents that it has the professional and technical personnel
required to perform the Programs expeditiously. Upon request of City, Recipient shall provide a
more detailed schedule of anticipated performance to meet all applicable deadlines.
3.3.4 Substitution of Key Personnel. Recipient has represented to City that
certain key personnel will perform and coordinate the Programs under this Agreement. Should
one or more of such personnel become unavailable, Recipient may substitute other personnel of
at least equal competence upon written approval of City. In the event that City and Recipient
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this
Page 51 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -4- ARPA AGREEMENT
Agreement for cause. The key personnel for performance of this Agreement are as follows: Janna
Nichols, Executive Director
3.3.5 City's Representative. The City hereby designates Matthew Downing, or
his/her designee, to act as its representative in all matters pertaining to the administration and
performance of this Agreement ("City's Representative"). City's Representative shall have the
power to act on behalf of the City for review and approval of all documents and reports submitted
by Recipient but not the authority to enlarge the Scope of Programs or change the amount or
source of Funds due to Recipient under this Agreement. The City Manager shall be authorized to
act on City's behalf and to execute all necessary documents which enlarge the Scope of Programs
or change the Recipient's amount or source of Funds subject to the provisions contained in this
Agreement. Recipient shall not accept direction or orders from any person other than the City
Manager, City's Representative or their designee.
3.3.6 Recipient's Representative. Recipient hereby designates Janna Nichols,
Executive Director, or his/her designee, to act as its representative for the performance of this
Agreement ("Recipient's Representative"). Recipient's Representative shall have full authority to
represent and act on behalf of the Recipient for all purposes under this Agreement. The
Recipient's Representative shall supervise and direct the Programs, using his/her best skill and
attention, and shall be responsible for all means, methods, techniques, sequences, and
procedures and for the satisfactory coordination of all portions of the Programs under this
Agreement.
3.3.7 Reserved.
3.3.8 Standard of Care; Performance of Employees. Recipient shall perform all
Programs under this Agreement in a skillful and competent manner, consistent with the standards
generally recognized as being employed by professionals in the same discipline in the State of
California. Recipient represents and maintains that it is skilled in the professional calling
necessary to perform the Programs. Recipient warrants that all employees and subrecipients
shall have sufficient skill and experience to perform the Programs assigned to them. Recipient
represents that it, its employees and subrecipients have all licenses, permits, qualifications and
approvals of whatever nature that are legally required to perform the Programs, and that such
licenses and approvals shall be maintained throughout the term of this Agreement. Recipient
shall perform, at its own cost and expense and without reimbursement from the City, any services
necessary to correct errors or omissions which are caused by the Recipient's failure to comply
with the standard of care provided for herein. Any employee of the Recipient or its subrecipients
who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely
completion of the Programs, a threat to the safety of persons or property, or any employee who
fails or refuses to perform the Programs in a manner acceptable to the City, shall be promptly
removed from the Programs by the Recipient and shall not be re-employed to perform any of the
Programs.
3.3.9 Period of Performance.
3.3.9.1 Recipient shall perform all Programs and expend the Funds in
accordance with the deadlines imposed under this Agreement within the Term set forth above
(“Performance Time”). Recipient agrees that if the Programs are not completed within the
aforementioned Performance Time and/or pursuant to provisions of this Agreement, it is
understood, acknowledged and agreed that the City will suffer damage.
Page 52 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -5- ARPA AGREEMENT
3.3.9.2 Neither City nor Recipient shall be considered in default of this
Agreement for delays in performance caused by circumstances beyond the reasonable control of
the non-performing Party. For purposes of this Agreement, such circumstances include a Force
Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s
performance and is one or more of the following : (1) Acts of God or other natural disasters; (2)
terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without
limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by
governmental authorities that are required for the services); (4) strikes and other organized labor
action occurring at the site and the effects thereof on the services, only to the extent such strikes
and other organized labor action are beyond the control of Recipient and its subcontractors, and
to the extent the effects thereof cannot be avoided by use of replacement workers; and (5)
pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of
governmental authorities,” includes ordinances, emergency proclamations and orders, rules to
protect the public health, welfare and safety, and other actions of a public agency applicable to
the services and Agreement.
3.3.9.3 Should a Force Majeure Event occur, the non-performing Party
shall, within a reasonable time of being prevented from performing, give written notice to the other
Party describing the circumstances preventing continued performance and the efforts being made
to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of
the Party responsible for the delay, shall not entitle Recipient to any additional compensation.
Notwithstanding the foregoing in this section, the City may still terminate this Agreement in
accordance with the termination provisions of this Agreement.
3.3.10 Laws and Regulations; Employee/Labor Certification.
3.3.10.1 Compliance with Laws. Recipient shall keep itself fully informed
of and in compliance with all local, state and federal laws, rules and regulations in any manner
affecting the use of the Funds or performance of the Programs, including but not limited to the
Federal Requirements (as such term is herein defined) set forth in Exhibit “A-1” to this Agreement,
which is incorporated herein by this reference and all Cal/OSHA requirements, and shall give all
notices required by law. Recipient shall be liable for all violations of such laws and regulations in
connection with the Programs and this Agreement. All violations of such laws and regulations
shall be grounds for the City to terminate the Agreement for cause and seek repayment of any
Funds improperly spent.
3.3.10.2 Employment Eligibility; Recipient. Recipient certifies that it fully
complies with all requirements and restrictions of state and federal law respecting the employment
of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of
1986, as may be amended from time to time and shall require all subrecipients and sub-
subrecipients to comply with the same. Recipient certifies that it has not committed a violation of
any such law within the five (5) years immediately preceding the date of execution of this
Agreement, and shall not violate any such law at any time during the term of the Agreement.
3.3.10.3 Equal Opportunity Employment. Recipient represents that it is
an equal opportunity employer and it shall not discriminate against any subrecipient, employee or
applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related to
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or
termination. Recipient shall also comply with all relevant provisions of City's Minority Business
Page 53 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -6- ARPA AGREEMENT
Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in
effect or hereinafter enacted.
3.3.10.4 Air Quality. To the extent applicable, Recipient must fully comply
with all applicable laws, rules and regulations in furnishing or using equipment and/or providing
services, including, but not limited to, emissions limits and permitting requirements imposed by
the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources
Board (CARB). Recipient shall indemnify City against any fines or penalties imposed by
SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable
laws, rules and/or regulations by Recipient, its subrecipients, or others for whom Recipient is
responsible under its indemnity obligations provided for in this Agreement.
3.3.10.5 Water Quality Management and Compliance. Recipient shall
keep itself and all subcontractors, staff, and employees fully informed of and in compliance with
all local, state and federal laws, rules and regulations that may impact, or be implicated by the
performance of the Programs including, without limitation, all applicable provisions of the City’s
ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33
U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code
§ 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such
authority. Recipient must additionally comply with the lawful requirements of the City, and any
other municipality, drainage district, or other local agency with jurisdiction over the location where
the Programs are to be conducted, regulating water quality and storm water discharges. City may
seek damages from Recipient for delay in completing the Programs caused by Recipient’s failure
to comply with the laws, regulations and policies described in this Section, or any other relevant
water quality law, regulation, or policy.
3.3.10.6 Safety. Recipient shall execute and maintain its work so as to
avoid injury or damage to any person or property. In carrying out its Programs, the Recipient shall
at all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed.
3.3.11 Insurance.
3.3.11.1 Time for Compliance. Recipient shall not commence work under
this Agreement until it has provided evidence satisfactory to the City that it has secured all
insurance required under this section. In addition, Recipient shall not allow any subrecipient to
commence work on any subcontract until it has provided evidence satisfactory to the City that the
subrecipient has secured all insurance required under this section. Failure to provide and
maintain all required insurance shall be grounds for the City to terminate this Agreement for cause.
3.3.11.2 Types of Insurance Required. As a condition precedent to the
effectiveness of this Agreement for work to be performed hereunder, and without limiting the
indemnity provisions of the Agreement, the Recipient, in partial performance of its obligations
under such Agreement, shall procure and maintain in full force and effect during the term of the
Agreement the following policies of insurance. If the existing policies do not meet the insurance
requirements set forth herein, Recipient agrees to amend, supplement or endorse the policies to
do so.
Page 54 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -7- ARPA AGREEMENT
(A) Commercial General Liability: Commercial General Liability
Insurance which affords coverage at least as broad as Insurance Programs Office "occurrence"
form CG 00 01, or the exact equivalent, with limits of not less than $1,000,000 per occurrence
and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to
the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for
contractual liability; (2) excluding coverage for claims or suits by one insured against another
(cross-liability); (3) products/completed operations liability; or (4) containing any other
exclusion(s) contrary to the terms or purposes of this Agreement.
(B) Automobile Liability Insurance: Automobile Liability
Insurance with coverage at least as broad as Insurance Programs Office Form CA 00 01 covering
"Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all
activities with limits of not less than $1,000,000 combined limit for each occurrence.
(C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of
not less than $1,000,000 per accident for bodily injury and disease.
(D) Professional Liability (Errors & Omissions): Professional
Liability insurance or Errors & Omissions insurance appropriate to Recipient’s profession with
limits of not less than $1,000,000. Covered professional services shall specifically include all
work to be performed under the Agreement and delete any exclusions that may potentially affect
the work to be performed (for example, any exclusions relating to lead, asbestos, pollution,
testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on
a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement
and continuous coverage will be maintained or an extended reporting period will be exercised for
a period of at least five (5) years from termination or expiration of this Agreement.
3.3.11.3 Insurance Endorsements. Required insurance policies shall
contain the following provisions, or Recipient shall provide endorsements on forms approved by
the City to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The
City, its officials, officers, employees, agents, and volunteers shall be additional insureds with
regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude
"contractual liability"; (3) restrict coverage to "sole" liability of Recipient; or (4) contain any other
exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial
General Liability insurance, Recipient shall provide endorsements in the form of ISO CG 20 10
10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this
requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage
reduced until a thirty (30) day written notice of cancellation has been served upon the City except
ten (10) days shall be allowed for non-payment of premium.
(B) Automobile Liability. (1) Cancellation: Required insurance
policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of
cancellation has been served upon the City except ten (10) days shall be allowed for non-payment
of premium.
Page 55 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -8- ARPA AGREEMENT
(C) Professional Liability (Errors & Omissions): 1) Cancellation:
Required insurance policies shall not be canceled or the coverage reduced until a thir ty (30) day
written notice of cancellation has been served upon the City except ten (10) days shall be allowed
for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall
include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the
insured and include a provision establishing the insurer’s duty to defend.
(D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written
notice of cancellation has been served upon the City except ten (10) days shall be allowed for
non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the
insurer waives all rights of subrogation against the City, its officials, officers, employees, agents,
and volunteers.
3.3.11.4 Primary and Non-Contributing Insurance. All policies of
Commercial General Liability and Automobile Liability insurance shall be primary and any other
insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees,
agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be
endorsed to contain such provisions.
3.3.11.5 Waiver of Subrogation. All required insurance coverages,
except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation
in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically
allow Recipient or others providing insurance evidence in compliance with these specifications to
waive their right of recovery prior to a loss. Recipient hereby waives its own right of recovery
against City, and shall require similar written express waivers and insurance clauses from each
of its subrecipients.
3.3.11.6 Deductibles and Self-Insured Retentions. Any deductible or self-
insured retention must be approved in writing by the City and shall protect the City, its officials,
officers, employees, agents, and volunteers in the same manner and t o the same extent as they
would have been protected had the policy or policies not contained a deductible or self-insured
retention.
3.3.11.7 Evidence of Insurance. The Recipient, concurrently with the
execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall
deliver either certified copies of the required policies, or original certificates on forms approved by
the City, together with all endorsements affecting each policy. Required insurance policies shall
not be in compliance if they include any limiting provision or endorsement that has not been
submitted to the City for approval. The certificates and endorsements for each insurance policy
shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least
fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that
such insurance coverage has been renewed or extended shall be filed with the City. If such
coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the
required coverage, Recipient shall, within ten (10) days after receipt of written notice of such
cancellation or reduction of coverage, file with the City evidence of insurance showing that the
required insurance has been reinstated or has been provided through another insurance company
or companies.
Page 56 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -9- ARPA AGREEMENT
3.3.11.8 Acceptability of Insurers. Each such policy shall be from a
company or companies with a current A.M. Best's rating of no less than A:VII and authorized to
transact business of insurance in the State of California, or otherwise allowed to place insurance
through surplus line brokers under applicable provisions of the California Insurance Code or any
federal law.
3.3.11.9 Enforcement of Agreement Provisions (non estoppel). Recipient
acknowledges and agrees that actual or alleged failure on the part of the City to inform Recipient
of non-compliance with any requirement imposes no additional obligation on the City nor does it
waive any rights hereunder.
3.3.11.10 Requirements Not Limiting. Requirement of specific coverage
or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or
other requirement, or a waiver of any coverage normally provided by any insurance.
3.3.11.11 Additional Insurance Provisions
(A) The foregoing requirements as to the types and limits of
insurance coverage to be maintained by Recipient, and any approval of said insurance by the
City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations
otherwise assumed by the Recipient pursuant to this Agreement, including but not limited to, the
provisions concerning indemnification.
(B) If at any time during the life of the Agreement, any policy of
insurance required under this Agreement does not comply with these specifications or is canceled
and not replaced, City has the right but not the duty to obtain the insurance it deems necessary
and any premium paid by City will be promptly reimbursed by Recipient or City will withhold
amounts sufficient to pay premium from Recipient payments. In the alternative, City may cancel
this Agreement.
(C) The City may require the Recipient to provide complete
copies of all insurance policies in effect for the duration of the Agreement.
(D) Neither the City nor any of its officials, officers, employees,
agents or volunteers shall be personally responsible for any liability arising under or by virtue of
this Agreement.
(E) The limits set forth herein shall apply separately to each
insured against whom claims are made or suits are brought, except with respect to the limits of
liability. Further the limits set forth herein shall not be construed to relieve the Recipient from
liability in excess of such coverage, nor shall it limit the Recipient’s indemnification obligations to
the City and shall not preclude the City from taking such other actions available to the City under
other provisions of the Agreement or law.
(F) Recipient shall report to the City, in addition to Recipient’s
insurer, any and all insurance claims submitted by Recipient in connection with the Programs
under this Agreement.
3.3.11.12 Insurance for Subrecipients. Recipient shall include all
subrecipients engaged in any work for Recipient relating to this Agreement as additional insureds
Page 57 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -10- ARPA AGREEMENT
under the Recipient's policies, or the Recipient shall be responsible for causing subrecipients to
purchase the appropriate insurance in compliance with the terms of these Insurance
Requirements, including adding the City, its officials, officers, employees, agents, and volunteers
as additional insureds to the subrecipient's policies. All policies of Commercial General Liability
insurance provided by Recipient’s subrecipients performing work relating to this Agreement shall
be endorsed to name the City, its officials, officers, employees, agents and volunteers as
additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing
equivalent coverage. Recipient shall not allow any subrecipient to commence work on any
subcontract relating to this Agreement until it has received satisfactory evidence of subrecipient’s
compliance with all insurance requirements under this Agreement, to the extent applicable. The
Recipient shall provide satisfactory evidence of compliance with this section upon request of the
City.
3.4 Labor Code Requirements.
3.4.1 Prevailing Wages. Recipient is aware of the requirements of California
Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations,
Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing
wage rates and the performance of other requirements on "public works" and "maintenance"
projects. If the Programs are being performed as part of an applicable "public works" or
"maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is
$1,000 or more, Recipient agrees to fully comply with such Prevailing Wage Laws. City shall
provide Recipient with a copy of the prevailing rates of per diem wages in effect at the
commencement of this Agreement. Recipient shall make copies of the prevailing rates of per
diem wages for each craft, classification or type of worker needed to execute t he Programs
available to interested parties upon request, and shall post copies at the Recipient's principal
place of business and at the project site. It is the intent of the parties to effectuate the
requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code
within this Agreement, and Recipient shall therefore comply with such Labor Code sections to the
fullest extent required by law. Recipient shall defend, indemnify and hold the City, its officials,
officers, employees, agents, and volunteers free and harmless from any claim or liability arising
out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.4.2 Registration/DIR Compliance. If the Programs are being performed on a
public works project of over $25,000 when the project is for construction, alteration, demolition,
installation, or repair work, or a public works project of over $15,000 when the project is for
maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and
1771.1, the Recipient and all subrecipients must be registered with the Department of Industrial
Relations (“DIR”). Recipient shall maintain registration for the duration of the Agreement and
require the same of any subrecipients.
3.4.3 Compliance Monitoring. This Agreement may also be subject to
compliance monitoring and enforcement by the DIR. It shall be Recipient’s sole responsibility to
comply with all applicable registration and labor compliance requirements, including the
submission of payroll records directly to the DIR. Any stop orders issued by the DIR against
Recipient or any subrecipient that affect Recipient’s performance of services, including any delay,
shall be Recipient’s sole responsibility. Any delay arising out of or resulting from such stop orders
shall be considered Recipient caused delay and shall not be compensable by the City. Recipient
shall defend, indemnify and hold the City, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of stop orders issued by the DIR against Recipient
Page 58 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -11- ARPA AGREEMENT
or any subrecipient.
3.4.4 Labor Certification. By its signature hereunder, Recipient certifies that it is
aware of the provisions of Section 3700 of the California Labor Code which require every
employer to be insured against liability for Worker's Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Programs.
3.5 Violations and Termination of Agreement.
3.5.1.1 Effect of Violations of Agreement. If the City discovers that
Recipient has breached any part of this Agreement or made a material misrepresentation, or
otherwise provided false information in its proposal or any document provided to City to support
Recipient’s request or a reimbursement, or Recipient has misused the Funds or used them for an
ineligible expenditure, Recipient shall return the entirety of the Funds to the City within ten (10)
calendar days of the City’s written notice. The City’s decision shall be final. Additionally, the City
shall have all other remedies besides the remedy provided herein to enforce this Agreement and
its Program.
3.5.1.2 Specific Performance. Recipient agrees that, by accepting
Funds, the City has the legal right, and that all necessary conditions have been satisfied, to
specifically enforce Recipient’s obligations pursuant to this Agreement.
3.5.1.3 Grounds for Termination. Notwithstanding anything to the
contrary herein, City may, by written notice to Recipient, terminate the whole or any part of this
Agreement at any time and without cause by giving written notice to Recipient of such termination,
and specifying the effective date thereof, at least seven (7) days before the effective date of such
termination. Upon termination for cause, Recipient may be required to refund any portion of the
Funds that have been spent contrary to this Agreement and Recipient shall be entitled to no
further compensation. Recipient may not terminate this Agreement except for cause. The rights
and remedies of the City provided in this section shall not be exclusive and are in addition to any
other rights and remedies provided by law, equity or under this Agreement.
3.5.1.4 Effect of Termination. If this Agreement is terminated as
provided herein, City may require Recipient to provide all finished or unfinished Documents and
Data and other information of any kind prepared by Recipient in connection with the performance
of Programs under this Agreement. Recipient shall be required to provide such document and
other information within fifteen (15) days of the request.
3.5.1.5 Mitigation for Programs. In the event this Agreement is
terminated in whole or in part as provided herein, City may procure, upon such terms and in such
manner as it may determine appropriate, services similar to those terminated.
3.6 Indemnification.
3.6.1 To the fullest extent permitted by law, Recipient shall defend (with counsel
of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and
agents free and harmless from any and all claims, demands, causes of action, costs, expenses,
liability, loss, damage or injury of any kind, in law or equity, to property or persons, including
wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or
Page 59 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -12- ARPA AGREEMENT
omissions, or willful misconduct of Recipient, its officials, officers, employees, subcontractors,
consultants or agents in connection with the performance of the Programs or this Agreement,
including without limitation the payment of all damages, expert witness fees and attorney’s fees
and other related costs and expenses except such loss or damage caused by the sole negligence
or willful misconduct of the City. Recipient's obligation to indemnify shall survive expiration or
termination of this Agreement and shall not be restricted to insurance proceeds, if any, received
by Recipient, the City, its officials, officers, employees, agents, or volunteers.
3.6.2 If Recipient’s obligation to defend, indemnify, and/or hold harmless arises
out of Recipient’s performance as a “design professional” (as that term is defined under Civil Code
section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully
incorporated herein, Recipient’s indemnification obligation shall be limited to claims that arise out
of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Recipient, and,
upon Recipient obtaining a final adjudication by a court of competent jurisdiction, Recipient’s
liability for such claim, including the cost to defend, shall not exceed the Recipient’s proportionate
percentage of fault.
3.7 General Provisions.
3.7.1 Accounting Records.
3.7.1.1 Recipient shall maintain complete and accurate records with
respect to all costs and expenses incurred under this Agreement. All such records shall be clearly
identifiable. Recipient shall allow a representative of City during normal business hours to
examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement. Recipient shall allow inspection of all work, data, documents,
proceedings, and activities related to the Agreement for a period of three (3) years from the date
of final payment under this Agreement.
3.7.1.2 Recipient shall maintain true, proper, and complete
documentation that evidences Recipient’s expenditures for approved uses of Funds (“Records”)
for five (5) years after all funds have been expended or through December 31, 2026, whichever
date is later. Recipient shall make available to City such Records within ten (10) calendar days
of the City’s request. Recipient understands that other agencies, including, without limitation, the
federal government, is authorized to audit City’s use of ARPA funds. Recipient shall use its best
efforts to cooperate, promptly, in any audit by any agency or entity, including a City audit. This
Section shall survive the termination or expiration of this Agreement.
3.7.1.3 Recipient shall provide notification to City of any audits or
investigations including results, findings, and/or liens
3.7.2 Independent Contractors and Subcontracting.
3.7.2.1 Use of Contractors. Recipient is aware of statutory and case law
regarding classification of workers as independent contractors, including California Labor Code
Section 2750.3 and Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018). To
ensure that Recipient is in compliance with the California Labor Code, Recipient shall only utilize
its employees to provide the Programs. Recipient may not provide the services through any
independent contractor, subcontractor or subrecipient (“Subcontractor(s)”) unless approved by
the City as set forth in Section 3.7.2.2 below. Recipient represents and warrants that all personnel
Page 60 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -13- ARPA AGREEMENT
who perform the Programs on Recipient’s behalf are Recipient’s employees, and that Recipient
complies with all applicable laws, rules and regulations governing its employees, including, but
not limited to, the California Labor Code, Unemployment Insurance Code and all applicable
Industrial Welfare Commission Wage Orders.
3.7.2.2 Prior Approval Required. Recipient shall not use any
Subcontractor to provide the Programs, or any portion of the work required by this Agreement,
without prior written approval of City. In the event that City authorizes Recipient to use a
Subcontractor, Recipient shall enter into a written agreement with the Subcontractor, which must
include all provisions of the Agreement, including a restriction on the Subcontractor’s use of
further independent contractors, subcontractors or subrecipients without the City’s prior written
consent.
3.7.3 Delivery of Notices. All notices permitted or required under this Agreement
shall be given to the respective parties at the following address, or at such other address as the
respective parties may provide in writing for this purpose:
Recipient: 5Cities Homeless Coalition
100 South 4th Street, PO Box 558
Grover Beach, CA 93483
ATTN: Janna Nichols, Executive Director
City: City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
ATTN: Matthew Downing, City Manager
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48)
hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its
applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
3.7.4 Ownership of Materials and Confidentiality.
3.7.4.1 Documents & Data; Licensing of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies, drawings, estimates, and other documents or works of authorship fixed in
any tangible medium of expression, including but not limited to, physical drawings or data
magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be
prepared by Recipient under this Agreement ("Documents & Data"). All Documents & Data shall
be and remain the property of City, and shall not be used in whole or in substantial part by
Recipient on other projects without the City’s express written permission. Within thirty (30) days
following the completion, suspension, abandonment or termination of this Agreement, Recipient
shall provide to City reproducible copies of all Documents & Data, in a form and amount required
by City. City reserves the right to select the method of document reproduction and to establish
where the reproduction will be accomplished. The reproduction expense shall be borne by City at
the actual cost of duplication. Recipient shall have no right to retain or fail to provide to City any
such documents pending resolution of a dispute. In addition, Recipient shall retain copies of all
Documents & Data on file for a minimum of fifteen (15) years following completion of the Programs
Page 61 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -14- ARPA AGREEMENT
under this Agreement, and shall make copies available to City upon the payment of actual
reasonable duplication costs. Before destroying the Documents & Data following this retention
period, Recipient shall make a reasonable effort to notify City and provide City with the opportunity
to obtain the documents.
3.7.4.2 Subrecipients. Recipient shall require all subrecipients to agree
in writing that City is granted a non-exclusive and perpetual license for any Documents & Data
the subrecipient prepares pursuant to this Agreement. Recipient represents and warrants that
Recipient has the legal right to license any and all Documents & Data. Recipient makes no such
representation and warranty in regard to Documents & Data which were prepared by design
professionals other than Recipient or its subrecipients, or those provided to Recipient by the City.
3.7.4.3 Right to Use. City shall not be limited in any way in its use or
reuse of the Documents and Data or any part of them at any time for purposes of this Agreement
or another project, provided that any such use not within the purposes intended by this Agreement
or on a project other than this Agreement without employing the services of Recipient shall be at
City’s sole risk. If City uses or reuses the Documents & Data on any project other than this this
Agreement, it shall remove the Recipient’s seal from the Documents & Data and indemnify and
hold harmless Recipient and its officers, directors, agents and employees from claims arising out
of the negligent use or re-use of the Documents & Data on such other project. Recipient shall be
responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only
with respect to the condition of the Documents & Data at the time they are provided to t he City
upon completion, suspension, abandonment or termination. Recipient shall not be responsible or
liable for any revisions to the Documents & Data made by any party other than Recipient, a party
for whom the Recipient is legally responsible or liable, or anyone approved by the Recipient.
3.7.4.4 Indemnification. Recipient shall defend, indemnify and hold the
City, its directors, officials, officers, employees, volunteers and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any
patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person
or entity in consequence of the use by City of the Documents & Data, including any method,
process, product, or concept specified or depicted.
3.7.4.5 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents & Data either created by or provided to Recipient in connection
with the performance of this Agreement shall be held confidential by Recipient. Such materials
shall not, without the prior written consent of City, be used by Recipient for any purposes other
than the performance of the Programs. Nor shall such materials be disclosed to any person or
entity not connected with the performance of the Programs. Nothing furnished to Recipient which
is otherwise known to Recipient or is generally known, or has become known, to the related
industry shall be deemed confidential. Recipient shall not use City's name or insignia,
photographs, or any publicity pertaining to the Programs provided under this Agreement in any
magazine, trade paper, newspaper, television or radio production or other similar medium without
the prior written consent of City.
3.7.5 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
Page 62 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -15- ARPA AGREEMENT
3.7.6 Entire Agreement. This Agreement contains the entire agreement of the
Parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements.
3.7.7 Attorneys’ Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this Agreement,
the prevailing party in such litigation shall be entitled to have and recover from the losing party
reasonable attorneys’ fees and all costs of such action.
3.7.8 Governing Law. This Agreement shall be governed by the laws of the State
of California. Venue shall be in San Luis Obispo County. In addition to any and all contract
requirements pertaining to notices of and requests for compensation or payment for extra work,
disputed work, claims and/or changed conditions, Recipient must comply with the claim
procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against
the City. Such Government Code claims and any subsequent lawsuit based upon the
Government Code claims shall be limited to those matters that remain unresolved after all
procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been
followed by Recipient. If no such Government Code claim is submitted, or if any prerequisite
contractual requirements are not otherwise satisfied as specified herein, Recipient shall be barred
from bringing and maintaining a valid lawsuit against the City.
3.7.9 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.7.10 City's Right to Fund Other Beneficiaries. City reserves right to fund other
beneficiaries in connection with services similar to the Programs.
3.7.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.7.12 Assignment or Transfer. Recipient shall not assign, sublet, or transfer this
Agreement or any rights under or interest in this Agreement without the written consent of the
City, which may be withheld for any reason. Any attempt to so assign or so transfer without such
consent shall be void and without legal effect and shall constitute grounds for termination.
Recipient shall not subcontract any portion of the Programs required by this Agreement, except
as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall
contain a provision making them subject to all provisions stipulated in this Agreement.
3.7.13 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agr eement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any term
referencing time, days or period for performance shall be deemed calendar days and not work
days. All references to Recipient include all personnel, employees, agents, and subrecipients of
Recipient, except as otherwise specified in this Agreement. All references to City include its
elected officials, officers, employees, agents, and volunteers except as otherwise specified in this
Agreement. The captions of the various articles and paragraphs are for convenience and ease
of reference only, and do not define, limit, augment, or describe the scope, content, or intent of
this Agreement.
3.7.14 Amendment; Modification. No supplement, modification, or amendment of
Page 63 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -16- ARPA AGREEMENT
this Agreement shall be binding unless executed in writing and signed by both Parties.
3.7.15 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waive r, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
3.7.16 No Third-Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.7.17 Taxes. The City and Recipient expressly agree that the Recipient shall be
responsible for all taxes that are associated in any way with the receipt or use of the Funds.
3.7.18 Invalidity; Severability. If any portion of this Agreement is declared invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
shall continue in full force and effect.
3.7.19 Prohibited Interests. Recipient maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Recipient, to solicit or secure this Agreement. Recipient warrants that it has not paid nor has
it agreed to pay any company or person, other than a bona fide employee working solely for
Recipient, any fee, commission, percentage, brokerage fee, gift or other consideration contingent
upon or resulting from the award or making of this Agreement. Recipient further agrees to file, or
shall cause its employees or subrecipients to file, a Statement of Economic Interest with the City’s
Filing Officer as required under state law in the performance of the Programs. For breach or
violation of this warranty, City shall have the right to rescind this Agreement without liability. For
the term of this Agreement, no member, officer or employee of City, during the term of his or her
service with City, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.7.20 Authority to Enter Agreement. Recipient has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.7.21 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.7.22 Survival. All rights and obligations hereunder that by their nature are to
continue after any expiration or termination of this Agreement, including, but not limited to, the
indemnification obligations, shall survive any such expiration or termination.
3.8 Federal Provisions. Funding for the Programs is provided, in whole or in part, by
an agency of the federal government; Recipient shall also fully and adequately comply with the
provisions included in Exhibit “A-1” (Federal Requirements) attached hereto and incorporated
herein by reference (“Federal Requirements”). With respect to any conflict between such Federal
Requirements and the terms of this Agreement and/or the provisions of state law, the more
stringent requirement shall control.
[SIGNATURES ON NEXT PAGE]
Page 64 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -17- ARPA AGREEMENT
SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF ARROYO GRANDE AND
5CITIES HOMELESS COALITION
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed
on the day and year first above written (the “Effective Date”).
CITY OF ARROYO GRANDE 5CITIES HOMELESS COALITION
By:
Ken Dalebout, President
By:
Its:
Printed Name:
Approved By:
Matthew Downing, City Manager
Approved as to Form:
_____________________________________
Best Best & Krieger LLP
Isaac Rosen, City Attorney
Attested By:
City Clerk
Page 65 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2020) Exhibits ARPA BENEFICIARY AGREEMENT
EXHIBIT “A”
PROGRAMS
This request is to support 5CHC’s housing assistance program which offers direct
financial assistance for Arroyo Grande residents to pay for housing and immediate needs;
and the operation of our interim non-congregate shelters (totaling 50 beds) located in the
neighboring City of Grover Beach. This request is based on the priorities of the County's
recently adopted plan to address homelessness.
Housing Assistance Request:
We are requesting $50,000 to provide direct financial assistance to support housing and
utility needs through our housing assistance program for residents of Arroyo Grande.
Funds will be used to help those experiencing homelessness to obtain housing through
Rapid Re-Housing and those at-risk of homelessness to avoid eviction through our
Homeless Prevention Program. This contribution from Arroyo Grande will also help us to
provide the local match required for other federal and state funds, which require a dollar-
for-dollar local match. These funds will be fully expended by December 2026, unless an
earlier date is requested.
In the first 9 months of this fiscal year (since July 2023) 5CHC has provided housing
assistance to residents of Arroyo Grande as follows:
Rapid Re-Housing Move-in Assistance (Deposit and Rent):
13% of 5CHC RRH assistance has supported Arroyo Grande residents
16 households, 26 people
$59,883 to-date, averaging $3,743 per household
Homeless Prevention (Deposit and Rent):
23% of 5CHC HP assistance has supported Arroyo Grande residents
25 households, 59 people
$91,155 to-date, averaging $3,636 per household
Shelter Request:
We are requesting $150,000 to provide shelter and housing navigation services through
our 20-bed Cabins for Change Program (located at 1523 B Longbranch, GB) and our
City of Arroyo Grande
Proposal
Page 66 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -2- ARPA AGREEMENT
soon-to-open 30-bed Balay Ko on Barca Program (located at 998 Barca Street, GB). Both
locations will operate with the same program requirements with a goal of assisting
participants to find permanent housing within 90 days. Both sites will pull participants from
the same waitlist, which currently has 313 individuals awaiting services. This funding
request amounts to 2.86% of the 5CHC’s shelter program two-year budget. Funds will be
fully expended by December 2026, unless an earlier date is requested.
Cabins for Change
20-Bed Shelter Opened in December 2022
Average Length of Stay – 106 days
Total participants 88 - 5% of participants from Arroyo Grande
Total housed – 46, 68% of participants
o Arroyo Grande Participants - 2 currently enrolled, 5 have been
housed
o Arroyo Grande Participants - 43% chronically homeless at entry
o Arroyo Grande Participants - 29% over the age of 60
Current wait list 313 - 12% of the applicants report being from Arroyo
Grande
Page 67 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -3- ARPA AGREEMENT
EXHIBIT "A-1"
FEDERAL REQUIREMENTS
1. Recipient acknowledges that the funding for the agreement to which this Exhibit is
attached (“Agreement”) is from federal, state, and/or City funds, including but not limited to
American Rescue Plan Act State and Local Fiscal Recovery Funds (“ARPA”). Recipient shall
comply with the requirements of the funding source, which includes but is not limited to ARPA, as
applicable to projects funded under the Revenue Loss category.
2. With respect to any conflict between the funding source requirements, this Exhibit, the
terms of the Agreement, or the provisions of state law, or city law or regulation, the more stringent
requirement shall control. In the event of an irreconcilable conflict between the requirements of
the funding source and the Agreement, the requirement of the funding source shall control and
shall amend the Agreement to the extent, and only to the extent, of the irreconcilable conflict.
3. Recipient agrees to accept any additional conditions governing the use of funds or
performance of programs as may be required by executive order, federal, state or local statute,
ordinance, rule or regulation or by policy adopted or issued by the State or Federal government,
or the awarding Federal agency.
4. Recipient shall comply with the assurances and certifications, which are attached hereto
and incorporated herein.
(Specific Assurances and Certifications begin on next page.)
Page 68 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -4- ARPA AGREEMENT
SPECIFIC ASSURANCES AND CERTIFICATIONS
1. ASSURANCES
In performing its responsibilities under this Agreement, Recipient assures that it will fully
comply with the following provisions as applicable:
1.1 American Rescue Plan Act - Generally
1.1.1 Recipient shall comply with the requirements of
(a) section 602 and 603 of the Social Security Act, regulations
adopted by the U.S. Department of Treasury pursuant to sections 602(f) and 603(f) of the Act;
(b) Coronavirus State and Local Fiscal Recovery Funds Final Rule,
codified at 31 CFR Part 35,
(c) U.S. Department of the Treasury Coronavirus State and Local
Fiscal Recovery Fund Award Terms and Conditions, and
(d) Guidance issued by Treasury regarding the foregoing, all of which
are expressly incorporated herein by reference.
1.1.2 Recipient agrees and acknowledges that the Federal Government is not
a party to this Agreement and is not subject to any obligations or liabilities to the City,
contractor, or any other party pertaining to any matter resulting from the Agreement.
1.2 Federal regulations applicable to ARPA-funded Agreements
Recipient shall comply with the requirements of federal regulations applicable to this
Agreement funded through ARPA, including, without limitation, the following:
1.2.1 Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, 2 CFR Part 200, other than such provisions as Treasury may
determine are inapplicable and subject to such exceptions as may be otherwise provided by
Treasury; including without limitation: (i) the requirement that costs be allowable under 2 CFR
200.403, and (iii) comply with the Single Audit Act under Subpart F – Audit Requirements of the
Uniform Guidance.
1.2.2 Universal Identifier and System for Award Management (SAM), 2 CFR
Part 25, pursuant to which the award term set forth in Appendix A to 2 CFR Part 25 is hereby
incorporated by reference.
1.2.3 Recipient Integrity and Performance Matters, pursuant to which the
award term set forth in 2 CFR. Part 200, Appendix XII to Part 200 is hereby incorporated by
reference.
1.2.4 Governmentwide Requirements for Drug-Free Workplace, 31 CFR Part
20.
1.2.5 New Restrictions on Lobbying, 31 CFR Part 21.
Page 69 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -5- ARPA AGREEMENT
1.2.6 Uniform Relocation Assistance and Real Property Acquisitions Act of
1970 (42 U.S.C. §§ 4601-4655) and implementing regulations.
1.2.7 Generally applicable federal environmental laws and regulations and all
other applicable Federal, State, and City laws, executive orders, regulations and policies
governing this Agreement.
1.3 Non-Discrimination
Recipient shall comply with the statues and regulations prohibiting discrimination,
including but not limited to:
1.3.1 Title VI of the Civil Rights Act of 1964, as amended, which prohibits
exclusion from participation, denial of the benefits of, or subjection to discrimination under
programs and activities receiving federal funds, of any person in the United States on the
ground of race, color, or national origin (42 U.S.C. § 2000d et seq.), as implemented by the
Department of the Treasury Title VI regulations at 31 CFR Part 22 and other pertinent executive
orders such as Executive Order 13166; directives; circulars; policies; memoranda and/or
guidance documents.
1.3.2 The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C.
§§ 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, religion,
national origin, sex, familial status, or disability;
1.3.3 Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Section 794) (24
CFR Parts 8‐9);
1.3.4 Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.),
and Treasury’s implementing regulations at 31 CFR Part 23, which prohibit discrimination on the
basis of age in programs or activities receiving federal financial assistance.
1.3.5 Title II of the Americans with Disabilities Act of 1990, as amended (42
U.S.C. §§ 12101 et seq.), which prohibits discrimination on the basis of disability under
programs, activities, and services provided or made available by state and local governments or
instrumentalities or agencies thereto.
1.3.6 Recipient acknowledges that Executive Order 13166, “Improving Access
to Services for Persons with Limited English Proficiency,” seeks to improve access to federally
assisted programs and activities for individuals who, because of national origin, have Limited
English Proficiency (LEP). Recipient understands that denying a person access to its
programs, services, and activities because of LEP is a form of national origin discrimination
prohibited under Title VI of the Civil Rights Act of 1964 and the Department of the Treasury’s
implementing regulations. Accordingly, Recipient shall
(a) Initiate reasonable steps, or comply with the Department of the
Treasury’s directives, to ensure that LEP persons have meaningful access to its programs,
services, and activities, which may entail providing language assistance services, including oral
interpretation and written translation where necessary, to ensure effective communication in the
Recipient’s programs, services, and activities under the Agreement.
Page 70 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -6- ARPA AGREEMENT
(b) Consider the need for language services for LEP persons during
development of applicable budgets and when conducting programs, services and activities
under the Agreement. As a resource, the Department of the Treasury has published its LEP
guidance at 70 FR 6067. For more information on LEP, please visit http://www.lep.gov.
(c) Acknowledge and agree that compliance with this assurance
constitutes a condition of continued receipt of federal financial assistance and is binding upon
Recipient and Recipient’s successors, transferees and assignees for the period in which such
assistance is provided.
(d) Acknowledge and agree that it must require any contractors,
subcontractors, successors, transferees, and assignees to comply with the assurances f(ii) and
f(iii), above, and agrees to incorporate the following language in every contract or agreement
subject to Title VI between Recipient and its subcontractors, successors, transferees, and
assignees:
The sub-grantee, contractor, subcontractor, successor, transferee, and assignee
shall comply with Title VI of the Civil Rights Act of 1964, wh ich prohibits
recipients of federal financial assistance from excluding from a program or
activity, denying benefits of, or otherwise discriminating against a person on the
basis of race, color, or national origin (42 U.S.C. § 2000d et seq.), as
implemented by the Department of the Treasury’s Title VI regulations, 31 CFR
Part 22, which are herein incorporated by reference and made a part of this
contract (or agreement). Title VI also includes protection to persons with
“Limited English Proficiency” in any program or activity receiving federal
financial assistance, 42 U.S.C. § 2000d et seq., as implemented by the
Department of the Treasury’s Title VI regulations, 31 CFR Part 22, and herein
incorporated by reference and made a part of this contract or agreement.
1.4 Protections for Whistleblowers.
1.4.1 In accordance with 41 U.S.C. § 4712, Recipient may not discharge,
demote, or otherwise discriminate against an employee in reprisal for disclosing to any of the list
of persons or entities provided below, information that the employee reasonably believes is
evidence of gross mismanagement of a federal contract or grant, a gross waste of federal funds,
an abuse of authority relating to a federal contract or grant, a substantial and specific danger to
public health or safety, or a violation of law, rule, or regulation related to a federal contract
(including the competition for or negotiation of a contract) or grant.
1.4.2 The list of persons and entities referenced in the paragraph above
includes the following:
(a) A member of Congress or a representative of a committee of
Congress;
(b) An Inspector General;
(c) The Government Accountability Office;
(d) A Treasury employee responsible for contract or grant oversight or
management;
Page 71 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -7- ARPA AGREEMENT
(e) An authorized official of the Department of Justice or other law
enforcement agency;
(f) A court or grand jury; or
(g) A management official or other employee of Recipient, contractor,
or subcontractor who has the responsibility to investigate, discover, or address misconduct
1.4.3 Recipient shall inform its employees in writing of the rights and remedies
provided under this section, in the predominant native language of the workforce.
1.5 Increasing Seat Belt Use in the United States.
Pursuant to Executive Order 13043, 62 FR 19217 (Apr. 18, 1997), Recipient should
encourage its contractors to adopt and enforce on-the-job seat belt policies and programs
for their employees when operating company-owned, rented or personally owned
vehicles.
1.6 Reducing Text Messaging While Driving.
Pursuant to Executive Order 13513, 74 FR 51225 (Oct. 6, 2009), Recipient should
encourage its employees, subconsultants, and contractors to adopt and enforce policies
that ban text messaging while driving, and Recipient should establish workplace safety
policies to decrease accidents caused by distracted drivers.
1.7 Conflicts of Interest.
Recipient shall take all necessary affirmative steps to prevent conflicts of interest as required by
2 CFR § 200.318 and the City’s conflict of interest policy, including but not limited to written
disclosure to the City of any potential conflict of interest.
1.8 Records and Access.
1.8.1 Recipient shall maintain records and financial documents sufficient to
evidence compliance with section 603(c) of the Act, Treasury’s regulations implementing that
section, guidance issued by Treasury regarding the foregoing, and 2 CFR 200.334-.338.
1.8.2 Recipient shall provide the Department of Treasury, Inspectors General,
the Comptroller of the United States, City or any of their authorized representatives access to
any documents, papers, or other records of the Recipient which are directly pertinent to this
Agreement for the purposes of making audits, examinations, excerpts, and transcriptions, and to
allow such parties to reproduce by any means whatsoever or to copy excerpts and
transcriptions as reasonably needed and access to construction or work sites pertaining to the
Services being completed under the Agreement.
1.8.3 Records shall be maintained by Recipient for a period of five (5) years
after all funds have been expended or returned to Treasury, whichever is later, with such date
anticipated by Recipient and the City to be December 31, 2026.
(Certifications begin on next page.)
Page 72 of 267
65501.00105\41534528.2
ATTACHMENT 1
BB&K (2023) -8- ARPA AGREEMENT
2. CERTIFICATIONS
2.1 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND
VOLUNTARY EXCLUSION – LOWER TIER COVERED TRANSACTIONS.
As required by Executive Orders 12549 and 12689, the undersigned, on behalf of the Recipient,
certifies that neither it nor its principals are presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from participation in this transaction by
any federal department or agency. Further, the undersigned agrees this is a covered transaction
under 2 CFR Part 180 and will, consequently, include a term or condition in all lower tier covered
transactions (contracts and subcontracts described in 2 CFR Part 180, subpart B) that the
Agreement is subject to 2 CFR Part 180 and Treasury’s implementing regulation at 31 CFR Part
19.
2.2 FALSE STATEMENTS.
Recipient understands that making false statements or claims in connection with this Agreement
is a violation of federal law and may result in criminal, civil, or administrative sanctions, including
fines, imprisonment, civil damages and penalties, debarment from participating in federal awards
or contracts, and/or any other remedy available by law.
2.3 CERTIFICATION OF NON-DELINQUENCY OF FEDERAL DEBT.
The undersigned, on behalf of the Recipient, certifies to the best of his or her knowledge
and belief that the Recipient is not delinquent in the repayment of any Federal debt as required
by 28 U.S.C.S. § 3201.
2.4 PERIOD OF PERFORMANCE
Notwithstanding any other expiration date provided in the Agreement, the period of
performance for the City’s award ends on December 31, 2026. Recipient acknowledges
that failure to submit any documentation to the City (including but not limited to invoice s,
compliance reports, change orders, progress reports, or backup documentation
supporting invoices) at least sixty days prior to this date and/or failure to complete any
activity required under the Agreement prior to the end of the period of performance m ay
result in loss of federal funds for the project and shall constitute an event of default under
the Agreement.
As the duly authorized representative of the Recipient, I hereby certify that the Recipient will
comply with the requirements of this Exhibit including the above certifications and has the
authority to enter in to this Exhibit to the Agreement.
_________________________________________ _____________
Signature of Authorized Representative Date
_________________________________________
Print Name and Title of Authorized Representative
Page 73 of 267
5Cities Homeless Coalition
Board of Directors
Ken Dalebout, President
Jeff Lee, Vice President
Mariam Shah, Vice President
Paul Jarvis, Secretary
Lisa Murdoch, Treasurer
Nancy Allison
Pat Cusack
Kassi Dee
Mike Martinez
Donna Milne
Jane Renahan
Amber Rogers
Paul Tompkins
Adam Verdin
Mike Wooten
Executive Director
Janna Nichols
Janna.Nichols@5chc.org
www5CHC.org
P.O. Box 558
Grover Beach, CA 93483
Office (805) 574-1638
Fax (805) 668-2380
5Cities Homeless Coalition
A 501(c)(3)
Nonprofit Corporation
ID #27-041359
5cities homeless coalition
April 30, 2024
Mr. Matt Downing
City Manager
City of Arroyo Grande
300 E Branch Street
Arroyo Grande, CA 93420
RE: Request for City of Arroyo Grande ARPA Funds for Homeless Services
Mr. Downing,
I am writing to request allocation of your City’s remaining ARPA funds, $200,000, that
have been set aside for homeless services. We are very grateful for the previous award of
$100,000 that is supporting operation of our winter inclement weather shelter at 1023 E.
Grand through November 2026.
This request is to support 5CHC’s housing assistance program which offers direct financial
assistance for Arroyo Grande residents to pay for housing and immediate needs; and the
operation of our interim non-congregate shelters (totaling 50 beds) located in the
neighboring City of Grover Beach. This request is based on the priorities of the County's
recently adopted plan to address homelessness.
Housing Assistance Request:
We are requesting $50,000 to provide direct financial assistance to support housing and
utility needs through our housing assistance program for residents of Arroyo Grande.
Funds will be used to help those experiencing homelessness to obtain housing through
Rapid Re-Housing and those at-risk of homelessness to avoid eviction through our
Homeless Prevention Program. This contribution from Arroyo Grande will also help us to
provide the local match required for other federal and state funds, which require a dollar-
for-dollar local match. These funds will be fully expended by December 2026, unless an
earlier date is requested.
In the first 9 months of this fiscal year (since July 2023) 5CHC has provided housing
assistance to residents of Arroyo Grande as follows:
Rapid Re-Housing Move-in Assistance (Deposit and Rent):
•13% of 5CHC RRH assistance has supported Arroyo Grande residents
•16 households, 26 people
•$59,883 to-date, averaging $3,743 per household
Homeless Prevention (Deposit and Rent):
•23% of 5CHC HP assistance has supported Arroyo Grande residents
•25 households, 59 people
•$91,155 to-date, averaging $3,636 per household
ATTACHMENT 2
Page 74 of 267
Shelter Request:
We are requesting $150,000 to provide shelter and housing navigation services through our 20-bed Cabins for
Change Program (located at 1523 B Longbranch, GB) and our soon-to-open 30-bed Balay Ko on Barca Program
(located at 998 Barca Street, GB). Both locations will operate with the same program requirements with a goal of
assisting participants to find permanent housing within 90 days. Both sites will pull participants from the same
waitlist, which currently has 313 individuals awaiting services. This funding request amounts to 2.86% of the
5CHC’s shelter program two-year budget. Funds will be fully expended by December 2026, unless an earlier date
is requested.
Cabins for Change
• 20-Bed Shelter Opened in December 2022
• Average Length of Stay – 106 days
• Total participants 88 - 5% of participants from Arroyo Grande
• Total housed – 46, 68% of participants
o Arroyo Grande Participants - 2 currently enrolled, 5 have been housed
o Arroyo Grande Participants - 43% chronically homeless at entry
o Arroyo Grande Participants - 29% over the age of 60
• Current wait list 313 - 12% of the applicants report being from Arroyo Grande
Additional 5CHC Services:
In our current fiscal year since July 1, 5CHC has provided additional services that also support Arroyo Grande
residents.
• Outreach Services – Connected with 27 individuals residing in AG. These outreach services include
assistance with documents, food, hygiene, and housing navigation services.
• Warming Center (Winter Inclement Weather): 37 nights open, 74 unique individuals served (Five Cities
Region).
Please let me know if you would like to meet to discuss further, or if you have additional questions.
Best regards,
Janna Nichols
5Cities Homeless Coalition
Page 75 of 267